Market research firm In-Stat believes that demand for semiconductors will soften in 2008 compared to the strong demand seen in 2007. Growth is being pegged at only 2.4 percent for the year, while worldwide semiconductor revenue is expected to grow to $261.9 billion in 2008. Semiconductor revenue growth is forecast to be 7.4 percent in 2009, followed by 9.7 percent and 11.6 percent in 2010 and 2011, respectively. 

"Declining MPU prices have joined DRAM price gyrations as a significant factor in computer segment annual growth," says Jim McGregor, In-Stat Research Director and Principal Analyst.

In-Stat also said that semiconductor value in the computer segment is in decline. Its share is forecast to be 41.8 percent by 2012, well below the 50-percent-plus levels of the 1990s. The consumer segment, according to the market research firm, will lead 2008 growth at 5.9 percent.